Knowledge transfer: a driver of business model innovation within the South African micro, small and medium enterprises

Abstract

SMMEs face challenges greater than those of larger companies, due to limited human and capital resources. These challenges are further exacerbated by the constraints imposed by the size of the SMMEs. Thus, to adapt to environmental changes and gain legitimacy, SMMEs must explore alternative ways to create value, achieve growth and competitive advantage. In exploring value creation and sustainable growth, this study explores the role of knowledge transfer in driving innovation to transform SMME business models into BMI. The study employed a qualitative methodology and gathered in-depth insights from the experiences of sixteen participants into the mechanisms of knowledge transfer and the various components of BMI, using the Business Model Canvas as the framework lens and anchored the study in knowledge-based theory. Further, the study explored other value chain aspects, in particular absorptive capacity and how SMMEs can build and use this capability to aid knowledge transfer, innovation, and enhance BMI. The study developed a theoretical framework for understanding and applying knowledge transfer aimed at driving innovation and BMI, particularly for SMMEs. The study noted subtle differences compared with the literature; however, these were mainly valuable to practitioners for improving their operations and the BMI process. Overall, the study's outcomes were consistent with the existing literature and, therefore, potentially contributed to the dynamic, ever-growing literature on BMI.